Credit score simulation

ABSTRACT

Systems and methods are described that simulate a credit score. The system enables a user to modify a credit data element in order to determine its effect on a credit score. The user can modify the element directly or simulate an action that, if performed, would modify the element. Since the number of possible modifications and actions can be overwhelming, in one embodiment, the system suggests modifications and actions to be simulated. These suggestions can be tailored to a user&#39;s goal, such as increasing a credit score by a particular number of points or allocating a particular sum of money in order to maximize a credit score. In one embodiment, the system obtains credit data from multiple credit bureaus and can determine credit scores using different algorithms, such as the different algorithms used by the different credit bureaus.

CROSS-REFERENCE TO RELATED APPLICATION

This patent application is a continuation-in-part of the following patent application, which is hereby incorporated by reference: U.S. patent application Ser. No. 10/452,155, filed on May 30, 2003, entitled “System and Method for Interactively Simulating a Credit-Worthiness Score.”

FIELD OF THE INVENTION

This invention relates generally to simulating a credit score and, more specifically, to determining how modifying credit data can affect a credit score.

BACKGROUND OF THE INVENTION

Credit analysis determines a numerical score that represents an amount of credit-worthiness (or credit risk) associated with an individual or a group. Businesses and financial institutions, among others, use this credit score to determine whether credit should be offered or granted, and at what terms, to the individual or group in question.

A credit score is determined based on several types of information, which is collectively called “credit data.” Credit data can include, for example, personal information (such as a value of a major asset), credit information (such as account balance), public record information (such as bankruptcy), and inquiry information (such as a request for a credit report). Each piece of credit data has a value, and this value can affect the credit score.

Since credit scores are important, it makes sense that a person would want to know how taking a particular action (such as increasing or decreasing an account balance) could affect her credit score. Unfortunately, it is very difficult to determine this by merely analyzing a set of credit data and its resulting credit score. Credit data is fed into an algorithm (called a risk model or “scorecard”), which analyzes the data and determines a credit score. Scorecards are generally kept secret, and it is nearly impossible to reverse-engineer them because they are so complex.

What is needed are a method and a system that can generate a first credit score, enable the credit data to be modified, and generate a second credit score. This will demonstrate how changes in credit data affect the credit score.

SUMMARY OF THE INVENTION

Systems and methods are described that simulate a credit score. That is, a first credit score is determined based on a first set of credit data, the first set of credit data is modified to form a second set of credit data, and a second credit score is determined based on the second set of credit data. The difference between the first and second scores, if any, is due to the difference between the first and second set of credit data. Credit data can include, for example, personal information, tradeline information, public record information, and inquiry information. A piece of credit data has a value, and this value can affect the credit score. A credit data element can be modified in real-life by performing an action, such as paying off a credit card balance or filing for bankruptcy.

In one embodiment, the system enables a user to modify a credit data element in order to determine its effect on a credit score. The user can modify the element directly or simulate an action that, if performed, would modify the element. Since the number of possible modifications and actions can be overwhelming, in one embodiment, the system suggests modifications and actions to be simulated. These suggestions can be tailored to a user's goal, such as increasing a credit score by a particular number of points or allocating a particular sum of money in order to maximize a credit score.

In one embodiment, the system includes a control module, a scenario module, a score module, a simulation options module, a presentation module, and a storage module. The modules can be located in a single device or be divided among multiple devices. In one embodiment, the system obtains credit data from one data repository, such as a credit bureau. In another embodiment, the system obtains credit data from multiple data repositories. In one embodiment, each credit score is determined using the same algorithm. In another embodiment, credit scores can be determined using different algorithms, such as the different algorithms used by the different credit bureaus.

BRIEF DESCRIPTION OF THE FIGURES

FIG. 1 is a block diagram of a credit score simulation system, according to one embodiment of the invention.

FIG. 2 is a block diagram of modules within a credit score simulation system, according to one embodiment of the invention.

FIG. 3 is a flow chart of a method of operation for a credit score simulation system, according to one embodiment of the invention.

FIG. 4 is a flow chart of a method for answering a complex question, according to one embodiment of the invention.

FIG. 5 is a user interface that shows login details, according to one embodiment of the invention.

FIG. 6 is a user interface that shows credit bureau options, according to one embodiment of the invention.

FIG. 7 is a user interface that shows simulation options, according to one embodiment of the invention.

FIG. 8 is a user interface that shows simulation options and a partially expanded Account Detail area, according to one embodiment of the invention.

FIG. 9 is a user interface that shows simulation options and a first fully expanded Account Detail area, according to one embodiment of the invention.

FIG. 10 is the user interface of FIG. 9, except that the window has been scrolled down to expose a different area.

FIG. 11 is a user interface that shows simulation options, a second fully expanded Account Detail area, and an expanded Experian account status pull-down menu, according to one embodiment of the invention.

FIG. 12 is a user interface that shows simulation options, a second fully expanded Account Detail area, and an expanded Experian present status pull-down menu, according to one embodiment of the invention.

FIG. 13 is a user interface that shows simulation options, a second fully expanded Account Detail area, and an expanded “Change on all” present status pull-down menu, according to one embodiment of the invention.

FIG. 14 is a user interface that shows simulation options and an expanded Tri-Bureau Comparison area, according to one embodiment of the invention.

FIG. 15 is a user interface that shows simulation options and an expanded Suggested Actions area, according to one embodiment of the invention.

FIG. 16 is a user interface that shows simulation options and an expanded Suggested Actions area where a selection has been made and a simulation has been run, according to one embodiment of the invention.

FIG. 17 is a user interface that shows simulation options and a Common Simulations area with a specified dollar value, according to one embodiment of the invention.

FIG. 18 is a user interface that shows simulation options and a Common Simulations area with simulation options based on a specified dollar value, according to one embodiment of the invention.

FIG. 19 is a user interface that shows simulation options and a Common Simulations area with simulation options based on a specified point value, according to one embodiment of the invention.

FIGS. 20A-B are user interfaces that show simulation options, according to one embodiment of the invention.

FIGS. 21 A-C are user interfaces that show the credit at a glance topic, according to multiple embodiments of the invention.

FIGS. 22A-F are user interfaces that show the credit summary topic, according to multiple embodiments of the invention.

FIGS. 23A-L are user interfaces that show the score comparison topic, according to multiple embodiments of the invention.

FIGS. 24A-B are user interfaces that show the print options topic, according to multiple embodiments of the invention.

The figures depict embodiments of the present invention for purposes of illustration only. One skilled in the art will readily recognize from the following discussion that alternative embodiments of the structures and methods illustrated herein can be employed without departing from the principles of the invention described herein.

DETAILED DESCRIPTIONS OF THE EMBODIMENTS

Many industries and fields are concerned with predicting the future based on information regarding the past and the present. For example, the loan industry wants to predict future financial behaviors (such as delinquency, bankruptcy, and profitability) based on past and current financial behaviors.

One way to express a prediction is by using a numerical score. This score can represent a likelihood that a particular phenomenon will occur in the future. The score can be determined based on input data (representing information about past and current phenomena) and an algorithm. In the loan industry, these scores are known as “financial risk scores.” One example of a financial risk score is a credit-worthiness score (“credit score”).

The embodiments described below address financial risk scores and, in particular, credit scores. However, the invention can be used in conjunction with any predictive system that generates scores. These predictive systems can address such diverse topics as, for example, stock prices, weather patterns, and systems failures.

While the invention can be used in conjunction with any financial risk score, the embodiments described below address credit scores in particular. Specifically, systems and methods for determining a credit score that is based on modified credit data are described.

In the following description, for purposes of explanation, numerous specific details are set forth in order to provide a thorough understanding of the invention. It will be apparent, however, to one skilled in the art that the invention can be practiced without these specific details. In other instances, structures and devices are shown in block diagram form in order to avoid obscuring the invention.

Reference in the specification to “one embodiment” or “an embodiment” means that a particular feature, structure, or characteristic described in connection with the embodiment is included in at least one embodiment of the invention. The appearances of the phrase “in one embodiment” in various places in the specification are not necessarily all referring to the same embodiment.

Some portions of the detailed descriptions that follow are presented in terms of algorithms and symbolic representations of operations on data bits within a computer memory. These algorithmic descriptions and representations are the means used by those skilled in the data processing arts to most effectively convey the substance of their work to others skilled in the art. An algorithm is here, and generally, conceived to be a self-consistent sequence of steps leading to a desired result. The steps are those requiring physical manipulations of physical quantities. Usually, though not necessarily, these quantities take the form of electrical or magnetic signals capable of being stored, transferred, combined, compared, and otherwise manipulated. It has proven convenient at times, principally for reasons of common usage, to refer to these signals as bits, values, elements, symbols, characters, terms, numbers, or the like.

It should be borne in mind, however, that all of these and similar terms are to be associated with the appropriate physical quantities and are merely convenient labels applied to these quantities. Unless specifically stated otherwise, as apparent from the following discussion, it is appreciated that throughout the description, discussions utilizing terms such as “processing” or “computing” or “calculating” or “determining” or “displaying” or the like, refer to the action and processes of a computer system, or similar electronic computing device, that manipulates and transforms data represented as physical (electronic) quantities within the computer system's registers and memories into other data similarly represented as physical quantities within the computer system memories or registers or other such information storage, transmission, or display devices.

The present invention also relates to an apparatus for performing the operations herein. This apparatus is specially constructed for the required purposes, or it comprises a general-purpose computer selectively activated or reconfigured by a computer program stored in the computer. Such a computer program is stored in a computer readable storage medium, such as, but not limited to, any type of disk including floppy disks, optical disks, CD-ROMs, and magnetic-optical disks, read-only memories (ROMs), random access memories (RAMs), EPROMs, EEPROMs, magnetic or optical cards, or any type of media suitable for storing electronic instructions, and each coupled to a computer system bus.

The algorithms and displays presented herein are not inherently related to any particular computer or other apparatus. Various general-purpose systems are used with programs in accordance with the teachings herein, or more specialized apparatus are constructed to perform the required method steps. The required structure for a variety of these systems will appear from the description below. In addition, the present invention is not described with reference to any particular programming language. It will be appreciated that a variety of programming languages can be used to implement the teachings of the invention as described herein.

Overview

As discussed above, a credit-worthiness score (“credit score”) is determined based on credit data. Credit data can include, for example, personal information, tradeline information, public record information, and inquiry information. Personal information can include, for example, birth date, a value of a major asset (such as a home), and job information (e.g., employment history, including salary and employer).

A tradeline is a line of credit, such as a credit card, retail account, installment loan, mortgage, or consumer finance account. Tradeline information can include, for example, type (e.g., revolving or installment), credit limit, date opened, chargeoffs, and payment history, including balance and whether or not the balance is past due (and, if so, how long and the amount of money involved).

Public record information can include, for example, bankruptcies, judgments, lawsuits, liens, and wage attachments. Inquiry information can include, for example, when a credit report was requested and by whom. Other types of credit data elements can include, for example, collection accounts.

Each piece of credit data has a value, and this value can affect the credit score. One way to determine the effect of a credit data element is to determine a first credit score using a first value of the element and a second credit score using a second value of the element (with all or most of the other credit data elements remaining unchanged). While the credit data used can be hypothetical (e.g., based on local or national averages or chosen at random), it is particularly useful when the credit data belongs to an actual person. And while the credit data element to be modified can be any credit data element, it is useful when the modification reflects a change that can be accomplished in real-life.

For example, a person might wonder “What if my credit card balance was zero? What would happen to my credit score?” A first credit score will be determined using the person's actual credit data. Then, the credit card balance will be changed to zero, and a second (“simulated”) credit score will be determined. The difference between the two credit scores is due to the credit card balance being set to zero.

A credit data element modification is brought about in real-life by performing an action. For example, a credit card balance can be set to zero by paying off the credit card. Thus, in the previous example, the difference between the two credit scores is due to having paid off the credit card. Similarly, a credit card balance can be increased by charging money to the card.

There are several different types of credit data elements, and modifications in their values can be brought about by a variety of actions. For example, personal information can be changed by buying or selling a house or by switching jobs. Tradeline information can be changed by, for example, opening an account, closing an account, making a payment, making a charge, or obtaining a different credit limit. Public record information can be changed by, for example, filing for bankruptcy or having a record expunged.

Also, each of these actions can have different characteristics that affect the underlying credit data element in a different way (or even not affect it at all). For example, charging money to a credit card affects the balance. But the “charging” action can vary in terms of how much money was charged and to which credit card. Similarly, opening an account creates a new tradeline. But the “opening” action can vary in terms of what type of account is opened and what its initial balance is.

The timing of the action can also matter. For example, paying off a credit card immediately versus paying it off in six months can result in two different credit scores. Similarly, paying off a first credit card and then paying off a second credit card can result in a different score than paying off the second credit card and then paying off the first.

In other words, a progression from one credit score to the next reflects the effect of a scenario. If the scenario occurs (e.g., if particular credit data elements are modified in particular ways at particular times), then the credit score will change from the first value to the second value.

Simulated credit scores can also be used to answer more complex questions. For example, imagine that a person wants to pay off his debts. Ideally, he would pay off all of his debts at once. But suppose he doesn't have enough money to do this. He wants to know how to allocate his money (e.g., which debts to pay down first, and in what amount) in order to maximize his credit score.

This situation can be represented by the following question: “If I have $x in cash, how should I allocate it in order to maximize my credit score?” One way to answer this question is to generate several scenarios, where the credit data elements in each scenario reflect that up to $x has been allocated (e.g., to pay down one or more tradelines). A simulated score would then be determined for each scenario. The scenario with the highest simulated score would indicate how $x (or up to $x) should be allocated in order to maximize the credit score.

For example, assume that a person has two credit cards (A and B) and a mortgage, each of which has a balance greater than $x. The following scenarios can be generated:

a) The balance on A is reduced by $x, and all other credit data elements are unchanged. (This scenario reflects using $x to pay down card A.)

b) The balance on B is reduced by $x, and all other credit data elements are unchanged. (This scenario reflects using $x to pay down card B.)

c) The balance on the mortgage is reduced by $x, and all other credit data elements are unchanged. (This choice reflects using $x to pay down the mortgage.)

d) The balance on A is reduced by $(x)(⅓), the balance on B is reduced by $(x)(⅓), the balance on the mortgage is reduced by $(x)(⅓), and all other credit data elements are unchanged. (This choice reflects using $x to pay down card A, card B, and the mortgage in equal amounts.)

The scenarios outlined above are only a few of the nearly infinite number of scenarios possible. For example, while each scenario above allocates $x in total, other scenarios are possible where less than $x is allocated in total. As another example, while the fourth scenario above allocates money in equal amounts to the three tradelines, other scenarios are possible where the money is allocated unequally among the tradelines (and possibly allocated to only two tradelines instead of three). As yet another example, while the scenarios above do not address timing, other scenarios are possible where the timing of the actions can differ, either in terms of on what date an action is performed or in terms of ordering between actions (e.g., which action is performed first and which action is performed second). A simulated credit score can be determined for each of these other scenarios.

Another complex question that can be answered by using simulated credit scores arises in the following situation: Imagine that a person wants to increase his credit score, but he doesn't know how. This situation can be represented by the following question: “What actions can I take to increase my credit score?” or, more specifically, “Which credit data elements should be modified (and by how much) to increase my credit score?” One way to answer this question is to generate several scenarios, where the credit data elements reflect real-life, except that one or more of them have been modified (i.e., one or more actions have been taken). For example, a balance has been paid down, a credit limit has been increased, and/or a new type of tradeline has been opened. Each scenario represents an action (or a set of actions) that, once performed, might increase the credit score. The simulated score is determined for each scenario, and the scenarios whose simulated scores are greater than the original score are identified. The person can then choose a scenario and carry it out. For example, the person might choose the scenario with the highest simulated score or the scenario whose actions require the least amount of money in order to be performed.

A related question is “Which x actions (or x sets of actions) will increase my credit score the most?” or, more specifically, “Which x credit data elements (or x sets of credit data elements) should be modified (and by how much) to increase my credit score the most?” In this situation, after the simulated score has been determined for each scenario, the x scenarios with the highest score increases are determined. (Note that since the scenarios are all being compared to the same starting score, the scenarios with the highest score increases are also the scenarios with the highest simulated scores.)

As yet another example, imagine that a person has applied for a mortgage. His actual credit score does not satisfy the mortgage lender's credit risk policy, so the application would normally be denied. This denial would hurt not only the applicant, but also the lender, since it would lose a potential customer. If the actual credit score comes close to satisfying the policy, then it is possible that the person can perform one or more actions in order to increase his score and thereby satisfy the policy.

This situation can be represented by the following question: “What actions (or sets of actions), once performed, would increase my credit score by x points?” This question is similar to the previous question, namely, “Which x actions (or sets of actions) will increase my credit score the most?” Here, however, the scenarios must increase the credit score by x (or more) points in order to be considered. (Of course, an increase of x or more points may be impossible, no matter what actions are performed.)

Answering these complex questions includes generating scenarios, determining a simulated score for each scenario, and analyzing the scores. While these steps are relatively straightforward, the quantity becomes unmanageable in practice. This is because the sheer number of credit data elements, along with their possible modifications (and when these modifications can occur), result in hundreds, thousands, or even millions of possible scenarios. Generating all of these scenarios and determining their associated scores would take an extremely long time.

An option is to decrease the number of scenarios that are generated and whose simulated scores are determined. The complex question would then be answered based on the available data. While it's unlikely that this abbreviated approach will return the same answer as the full-blown approach, the answer should be close enough to be useful. For example, the answer may not be “the best (i.e., ideal) way to allocate up to $x in order to maximize a credit score,” but it will be sufficiently close for the user.

One way to decrease the number of scenarios is to choose them randomly from the set of all possible scenarios. However, this approach can lead to an answer that is far from the “true” answer. A better way is to choose which scenarios to simulate so that the sample set (the chosen scenarios) is representative of the entire search space. Consider the example of allocating up to $x. The universe of possible scenarios includes paying down each tradeline in an amount from $0 to $x (and, if less than $x, possibly using the remaining money to pay down additional tradelines). One way to decrease the number of scenarios is to search this universe in a structured way. In particular, scenarios can be chosen that exist in different parts of the search space.

For example, credit scores can be determined for the following scenarios: allocating $x to tradeline 1; allocating $x to tradeline 2; . . . ; allocating $x to tradeline N; and allocating $(x)(1/N) to each tradeline (1 to N). These scores indicate how attractive various portions of the search space are and can thus be used to determine which scenarios to try next. Then, those results can determine which scenarios to try next, and so on. (Credit scores can also be determined for scenarios that vary in terms of when money is allocated and/or in what order.)

Yet another way to decrease the number of scenarios is to leverage knowledge of the scoring algorithm. For example, a scoring algorithm might round off each tradeline balance to the nearest $5. In this situation, a $106 balance will be rounded off to $105. Thus, it is irrelevant (to the credit score) whether the balance is actually $106 or $105. If one scenario creates a $106 balance and another creates a $105 balance, then both scenarios will yield the same credit score (assuming, of course, that the rest of the credit data elements are equal). Since both scenarios will yield the same credit score, it is unnecessary to determine credit scores for each scenario.

As another example, a scoring algorithm might weight a first credit data element more heavily than a second credit data element. This means that changes in the first credit data element will affect the credit score more than changes in the second credit data element. Thus, it might make more sense to process scenarios that vary the first credit data element before processing scenarios that vary the second credit data element. An extreme example of this is when the scoring algorithm completely ignores a credit data element. In this situation, scenarios that differ with respect to only that credit data element would all yield the same credit score and thus are redundant.

While increasing the number of iterations generally returns an answer that is closer to the “true” answer, it also takes more time. This time can be important if the user is impatiently waiting for the answer. On the other hand, the user might want a better answer no matter how long it takes. In one embodiment, a threshold is used to determine when to stop the iterations and return an answer based on the credit scores determined so far. The threshold value can be set according to the user's goals (e.g., a quicker answer versus a more correct, but slower answer). The threshold can measure, for example, how many credit scores have been determined, how many iterations have been performed, how representative the sample set is of the entire search space, and how useful (or how close to the truth) the current answer would be.

System

In one embodiment, a credit score simulation system 100 determines a credit score that is based on modified credit data. A scenario (e.g., a set of credit data elements and their values) can be input in various ways, such as by using a variety of user interface elements or by specifying a file. In the former embodiment, a user can interact with the simulation system 100, while in the latter embodiment, the simulation system 100 can operate independently of the user. In other words, the simulation system 100 can be run in “interactive” mode or in “batch” mode.

Batch mode can be useful, for example, when a business or financial institution is dealing with dozens, hundreds, or thousands of people. For example, a collection agency wants to tell its debtors that their debts are hurting their credit scores. The collection agency can request that each person's credit score be simulated as if the debt were paid off. The agency can then tell each debtor the difference between the simulated score and the actual score, in an attempt to convince her to pay off her debt. The requested simulations can be run in batch mode.

An interactive simulation system 100 includes a plurality of modules, which are discussed below with reference to FIG. 2. In one embodiment, the modules are located in a single device. This device can be, for example, a laptop computer, a desktop computer, a server, a handheld device, a Personal Digital Assistant (PDA), a wireless phone, or any other type of general-purpose computing apparatus or specialized computer apparatus. Together, the modules can form, for example, a standalone application or a web browser plug-in.

In another embodiment, the modules are divided among a plurality of devices. For example, the storage module 250 (discussed below) can be located in a separate device, such as a data server that contains a database or other type of data repository. As another example, some modules can be located in a client, while other modules can be located in a server. In one embodiment, most of the modules are located in the server, and the client is therefore a “thin” client.

FIG. 1 is a block diagram of a credit score simulation system, according to one embodiment of the invention. In the illustrated embodiment, simulation system 100 includes a client 110, a server 120, a data server 130, and a communications network 140. The client 110 can be, for example, a general-purpose computer capable of running a web browser or other user-interface program or a limited-function electronic device configured to communicate with the server 120. The server 120 can be, for example, a general-purpose computer configured to serve web pages or otherwise communicate with the client 110. The data server 130 can be, for example, a general-purpose computer configured to store data and provide remote access to the data.

The client 110 and the data server 130 are communicatively coupled to the server 120. These connections can be wired and/or wireless. In the illustrated embodiment, the client 110 and the data server 130 are communicatively coupled to the server 120 via a communications network 140. The network 140 can be, for example, a public or private network such as a Local Area Network (LAN), a Wide Area Network (WAN), an intranet, and/or the Internet.

Many other embodiments of simulation system 100 are also possible. For example, multiple devices of the same type can be present. There can be multiple clients 110, multiple servers 120, and/or multiple data servers 130, some or all of which are interconnected.

FIG. 2 is a block diagram of modules within a credit score simulation system, according to one embodiment of the invention. Generally, a simulation system 100 includes a plurality of modules for determining a credit score that is based on modified credit data. In the illustrated embodiment, the simulation system 100 includes six modules that are communicatively coupled: a control module 200, a scenario module 210, a score module 220, a simulation options module 230, a presentation module 240, and storage module 250. The modules 200, 210, 220, 230, 240, 250 can be coupled using, for example, a data bus, a cable, and/or a network.

As used herein, the term “module” refers to computer program logic or instructions for providing the specified functionality. A module can be implemented in hardware, firmware, and/or software. In one embodiment, a module is a set of program instructions that is loaded into a memory and executed by a processor. The program instructions can be distributed, e.g., on a computer-readable medium or on a storage device and can be in any appropriate form, such as source code, object code, and/or scripting code.

The control module 200 controls the operation and process flow of the simulation system 100, transmitting instructions and data to as well as receiving data from the modules 210, 220, 230, 240, 250. The control module 200 causes the simulation system 100 to operate differently based on the input that has been received. The control module 200 will be further discussed below.

The scenario module 210 determines a scenario that includes one or more credit data elements and their values. A value is determined, for example, based on one or more values in the storage module 250. Exactly how the value is determined can vary based on the type of calculation that has been requested. In one embodiment, a value is set equal to a value in the storage module 250. In another embodiment, a value is calculated based on one or more values in the storage module 250. The scenario module 210 will be further discussed below.

The score module 220 determines a credit score given a scenario. In one embodiment, the simulation system 100 includes a plurality of score modules 220. Each score module can determine a credit score in a different way. This means that the same credit data can result in two different credit scores. In one embodiment, three score modules 220 are used, and their methods of determining credit scores correspond to the methods used by the Experian, Equifax, and TransUnion credit bureaus.

The simulation options module 230 determines an answer to a complex question, such as how to allocate a sum of money so that the credit score is maximized. FIG. 4 is a flow chart of a method for answering a complex question, according to one embodiment of the invention. The simulation options module 230 determines 410 one or more scenarios to simulate. The sample space of possible scenarios can be defined by the question. For example, if the question is how to allocate a sum of money so that the credit score is maximized, a scenario will include allocating money (up to the amount specified). As described above, within the sample space, these scenarios can be chosen randomly or they can be chosen based on, for example, coverage of the sample space or knowledge of the underlying scoring algorithm used by the score module 220. (In subsequent passes, the scenarios can also be chosen based on the scores of other scenarios. In the first pass, however, no scores have been determined.)

The scenario module 210 generates 420 one or more scenarios, and the score module 220 determines 430 one or more credit scores (one for each scenario). The simulation options module 230 determines 440 whether the threshold value has been reached. If it has not been reached, then another iteration starts and steps 410-440 are repeated. (Since this is a subsequent pass, scenarios can now be chosen based on the scores of other scenarios.) If it has been reached, then the simulation options module 230 analyzes 450 the results and returns 460 one or more scenarios. For example, the simulation options module 230 identifies 450 the four actions (or sets of actions) that will increase the credit score the most and returns 460 the four actions (or sets of actions). The simulation options module 230 is used to support the Suggested Actions and Common Simulations features, which will be discussed below.

The presentation module 240 generates a user interface that enables a user to specify simulation options and that presents simulation results (if any). In one embodiment, the presentation module 240 generates a web page (e.g., an HTML file), and the web page is presented to the user via a web browser. In another embodiment, the presentation module 240 generates a sound clip, and the sound clip is presented to the user via a speaker.

The storage module 250 stores one or more credit data elements and zero or more values for each credit data element (e.g., an original value, a first modified value, and a second modified value). The values can be hypothetical or they can be real-life values that correspond to an actual person. The values can be entered manually (e.g., using a keyboard or pointing device) or they can be obtained from a file. The values can originate from an individual (e.g., a consumer) or they can originate from an institution (e.g., a credit bureau).

In real-life, the information about an entity that is collected by a credit bureau can differ from bureau to bureau. For example, one credit bureau may show a person as having only two credit cards, while another credit bureau may show the same person as having three credit cards. In one embodiment, the storage module 250 includes multiple sets of data, one for each credit bureau. By accessing this data, the scenario module 210 can generate a scenario that represents data collected by a particular credit bureau. For example, the scenario module 210 can generate a scenario that represents data collected by Experian. Since information can differ among credit bureaus, an Experian scenario might differ from an Equifax or TransUnion scenario. This means that the scenarios might yield different credit scores when input into the score module 220.

Those of skill in the art will understand that other embodiments of the simulation system 100 can have different and/or other modules than the ones described herein. For example, a non-interactive simulation system 100 might not have a presentation module 240. Rather than using the presentation module 240 to present the results to the user, the system 100 could store its results in a file. In addition, the functionalities can be distributed among the modules in a manner different than described herein.

User Scenarios

FIG. 3 is a flow chart of a method of operation for a credit score simulation system, according to one embodiment of the invention. The control module 200 causes the simulation system 100 to perform the method 300. A login is presented 310 to a user. FIG. 5 is a user interface that shows login details, according to one embodiment of the invention. In the illustrated embodiment, the user is using a web browser software application, and the login comprises a web page that is displayed by the web browser. The user identifies herself by, for example, entering a user ID and password into various fields of the web page. This information is received 310, and the password is checked against a password file.

In FIG. 5, the user enters a Simulator User ID, a Client User ID, and a Credit Report ID. The user also enters a Social Security Number, which belongs to the person whose credit score will be simulated. Note that this person may not be the same person as the user. For example, the user might be a mortgage lender, while the Social Security Number might belong to the applicant (i.e., the person who is applying for the mortgage).

In FIG. 3, if the password is correct, credit bureau options are presented 320 to the user. In one embodiment, the storage module 250 includes multiple sets of data, one for each credit bureau, as discussed above. FIG. 6 is a user interface that shows credit bureau options, according to one embodiment of the invention. In FIG. 6, the user can select Experian, Equifax, and/or TransUnion. In the illustrated embodiment, the user has selected all three. Thus, the user will be able to determine credit scores based on three possible sets of data: data collected by Experian, data collected by Equifax, and data collected by TransUnion. The credit bureau information is received 320.

In one embodiment, the simulation system 100 includes one score module 220. This score module 200 can determine a credit score based on any scenario, whether the scenario represents Experian data, Equifax data, or TransUnion data. In another embodiment, the system 100 includes multiple score modules 220, where each score module 220 determines a credit score using a different scoring algorithm. In one embodiment, there are three score modules 220: one that applies the Experian algorithm, one that applies the Equifax algorithm, and one that applies the TransUnion algorithm.

The scenario module 210 generates 330 one or more scenarios, depending on the credit bureau options that were received in step 320. For example, if three credit bureaus were selected, then the scenario module 210 would generate 330 three scenarios, one representing Experian data, one representing Equifax data, and one representing TransUnion data. In the first pass through step 330, the credit data elements in the scenario(s) (and their values) correspond to the credit bureau data for the person represented by the Social Security Number that was received in step 310. In subsequent passes, the credit data elements in the scenario(s) can differ based on simulation options, as described below.

The score module 220 determines 340 one or more credit scores based on the one or more scenarios. For example, if the scenario module 210 generated 330 three scenarios, then the score module 220 would determine 340 three credit scores.

The presentation module 240 formats the one or more credit scores to generate a user interface, and they are presented 350 to the user, along with one or more simulation options. (In subsequent passes, simulation results will also be presented 350. In the first pass, however, no simulation has been performed.) In one embodiment, the simulation options are set using various user interface elements. FIG. 7 is a user interface that shows simulation options, according to one embodiment of the invention. The illustrated embodiment includes an Original Score area 700. The Original Score area 700 includes a table with three columns: one for Experian, one for Equifax, and one for TransUnion. The information in the table represents the credit score that was determined in the first pass of step 340. Since the illustrated embodiment uses sets of data from three credit bureaus, three credit scores are shown: 542, 540, and 535. These scores are based on the scenarios that were generated in the first pass of step 330.

In the illustrated embodiment, the simulation options are grouped into four areas: Tri-Bureau Comparison 710, Suggested Actions 720, Common Simulations 730, and Account Detail 740. Each of these areas will be discussed below. The user defines a scenario using one or more simulation options in one or more of these areas. The user then selects the Simulate 750 button in order to simulate the scenario. FIG. 7 also includes a Legend area 755, which will be discussed below.

The results of the simulation would be shown in the Simulated Score area 760 and the Score Differential area 770. (In FIG. 7, the Simulate button 750 has not been selected, so no simulation results are shown.) The Simulated Score area 760 would show the three simulated credit scores, while the Score Differential area 770 would show the differences between the simulated scores and the original scores. Also, the Simulated Actions area 780 would include text that described which actions had been simulated. In one embodiment, if no actions have been simulated, then no text appears in the Simulated Actions area 780.

In one embodiment, simulation options set by a user remain even after they have been simulated. In this way, the user can build upon previous simulations without having to re-enter all of the options each time. In one embodiment, the options can be stored between sessions so that they can be reloaded in the future. If a user wants to return to the first (original) scenario, she selects the Reset button 790.

The Account Detail area 740 shows information corresponding to particular tradelines. In one embodiment, the account detail area 740 can appear collapsed, partially expanded, or fully expanded. In FIG. 7, the Account Detail area 740 is collapsed so that it includes only the title bar. By selecting the arrow 792 to the left of the words “Account Detail,” the Account Detail area 740 can toggle between collapsed and partially expanded.

FIG. 8 is a user interface that shows simulation options and a partially expanded Account Detail area, according to one embodiment of the invention. In the illustrated embodiment, the Account Detail area 740 now includes the title bar and a table with eight rows, each representing one tradeline. The columns of the table represent the three credit bureaus, and the values in the table represent the balance of each tradeline according to each credit bureau. Thus, in the illustrated embodiment, ASSOC/CITI's balance is $1359 according to Experian, $862 according to Equifax, and $1359 according to TransUnion. By selecting the arrow 800 to the left of a tradeline name (here, “ASSOC/CITI”, “UNITED CREDIT NATIONAL”, “BURDINES/FDSB”, etc.), the Account Detail area 740 can toggle between partially expanded and fully expanded.

FIG. 9 is a user interface that shows simulation options and a first fully expanded Account Detail area, according to one embodiment of the invention. In the illustrated embodiment, the Account Detail area 740 now includes the following information for the ASSOC/CITI tradeline: account name, account number, account type, account status, monthly payment, date open, balance, terms, high balance, present status, worst ever, and worst ever 6 months. FIG. 10 is the user interface of FIG. 9, except that the window has been scrolled down to expose a different area. The newly-exposed area shows the following tradeline information: worst ever 12 months, worst ever 24 months, limit, past due, payment status, and comments.

In one embodiment, the Account Detail area 740 enables a user to change any of this information and then run a simulation. In the illustrated embodiment, some of the information cannot be changed. This is because, for example, the information does not necessarily affect the credit score (e.g., account number) or the information affects the credit score but cannot be changed in real-life (e.g., date open). In one embodiment, the possible values for each field are as follows: account status (“open” or “closed”), balance (any number; represents current balance), high balance (any number; represents highest balance ever), present status (current, delinquent, time delinquent, amount delinquent), worst ever (cumulative delinquent status for all time), worst ever 6 months (cumulative delinquent status for past 6 months), worst ever 12 months (cumulative delinquent status for past 12 months), and worst ever 24 months (cumulative delinquent status for past 24 months).

In one embodiment, the Account Detail area 740 enables a user to change a piece of information for each credit bureau independently. In another embodiment, rather than change the same piece of information for all three credit bureaus, the user can indicate that one piece of information should be used for all bureaus. In the illustrated embodiment, this is achieved by entering the information in the “Change on all” column 900.

In one embodiment, the Account Detail area 740 also includes a 24 Month Payment History area 1000. The 24 Month Payment History area 1000 shows, on a per-month basis, whether the past 24 months of payments were received on time and, if they were not, what eventually happened regarding the balance. In the illustrated embodiment, the 24 Month Payment History area 1000 includes three rows: one based on Experian data, one based on Equifax data, and one based on TransUnion data.

In one embodiment, the 24 Month Payment History area 1000 enables a user to change any of the payment history information and then run a simulation. Of course, this is just for informational purposes, since the payment history is fixed and cannot be changed in real-life (unless, of course, the information does not reflect what actually happened and is therefore incorrect). In the illustrated embodiment, the payment history information for a particular month can be changed by selecting the portion of the 24 Month Payment History area 1000 that represents that month (not shown).

The 24 Month Payment History area 1000 is further explained by a Legend area 755, as shown in FIG. 7. In the illustrated embodiment, the Legend Area 755 includes symbols that represent the following payment information: current, 30 days late, 60 days late, 90 days late, 120 days late, modified historical data, modified future data, unmodified future data, chargeoff or collection, repossession or foreclosure, payment plan, and no data provided.

FIG. 11 is a user interface that shows simulation options, a second fully expanded Account Detail area, and an expanded Experian account status pull-down menu, according to one embodiment of the invention. FIG. 12 is a user interface that shows simulation options, a second fully expanded Account Detail area, and an expanded Experian present status pull-down menu, according to one embodiment of the invention. FIG. 13 is a user interface that shows simulation options, a second fully expanded Account Detail area, and an expanded “Change on all” present status pull-down menu, according to one embodiment of the invention.

As mentioned above, the information about an entity that is collected by a credit bureau can differ from bureau to bureau. In the illustrated embodiment, the Account Detail area 740 lists tradeline information for multiple credit bureaus. Thus, if there is a discrepancy in this information, it will be reflected in the Account Detail area 740. Specifically, one row of the Account Detail area 740 will contain unequal values.

The Tri-Bureau Comparison area 710 enables a user to identify discrepancies more easily. In FIG. 7, the Tri-Bureau Comparison area 710 is collapsed so that it includes only the title bar. By selecting the arrow 794 to the left of the words “Tri-Bureau Comparison,” the Tri-Bureau Comparison area 710 can toggle between collapsed and expanded.

FIG. 14 is a user interface that shows simulation options and an expanded Tri-Bureau Comparison area, according to one embodiment of the invention. In the illustrated embodiment, the Tri-Bureau Comparison area 710 now includes the title bar and a table with eight rows, each representing one tradeline. The columns of the table represent the three credit bureaus, and the values in the table represent information about each tradeline according to each credit bureau. In the illustrated embodiment, Experian data shows that a tradeline exists with a name of ASSOC/CITI, an account number of 541931059694, and a balance of $1359, while Equifax data shows that the same tradeline (same name and number) has a balance of $862, and TransUnion data shows that the same tradeline has a balance of $1359.

In one embodiment, the Tri-Bureau Comparison area 710 shows only information where there is a discrepancy. In another embodiment, the Tri-Bureau Comparison area 710 shows all information (whether or not there is a discrepancy), but indicates where discrepancies exist. For example, information where there is a discrepancy is shown first, and information where there is not a discrepancy is shown second (e.g., farther below). As another example, information where there is a discrepancy is shown in a different way (e.g., in a different color, highlighted, or marked by a symbol) than information where there is not a discrepancy. In one embodiment, the Change on all column 900 in the Account Detail area 740 can be used to simulate correct information when a discrepancy exists.

In the illustrated embodiment, the Dispute Resolution button 1400 can help the user correct discrepancies. For example, it can direct the user to a credit bureau's dispute resolution department or help the user compose a letter notifying the credit bureau that a discrepancy exists. In another embodiment (not shown), a user interface element helps the user perform an action that has been simulated. This can include, for example, applying for new credit, consolidating loans, and refinancing a mortgage. In another embodiment (also not shown), a user interface element helps the user research and/or obtain related products and/or services, such as credit reports and credit monitoring.

The Suggested Actions area 720 includes one or more actions (or one or more sets of actions) that can be simulated. In FIG. 7, the Suggested Actions area 720 is collapsed so that it includes only the title bar. By selecting the arrow 796 to the left of the words “Suggested Actions,” the Suggested Actions area 720 can toggle between collapsed and expanded.

FIG. 15 is a user interface that shows simulation options and an expanded Suggested Actions area, according to one embodiment of the invention. In one embodiment, if a set of actions is shown, the user can select all of the actions for simulation or select only a subset. If selected, an action will be taken into account when the Simulate button 750 is selected and a scenario is generated. For example, if the action “pay off all credit cards” was selected then the credit data elements that represented the credit card balances would be set to zero in the scenario.

In the illustrated embodiment, two actions are shown: “Reduce Revolving Utilization or Balance to Limit Ratio” and “Pay Off Revolving Balances.” A user can select an action (e.g., by selecting a checkbox) and then select the Simulate button 750 to simulate the effect that this action would (have. In one embodiment (not shown), the Suggested Actions area 720 also includes explanatory text. This text can indicate, for example, the effects caused by performing the actions and the prerequisites for performing the actions (e.g., available finds).

FIG. 16 is a user interface that shows simulation options and an expanded Suggested Actions area where a selection has been made and a simulation has been run, according to one embodiment of the invention.

In one embodiment, the particular actions (or sets of actions) listed in the Suggested Actions area 720 will increase the credit score. These actions (or sets of actions) can be determined by using the simulation options module 230, as described above. The simulation options module 230 determines an answer to a complex question. Here, the question is “What actions (or sets of actions), once performed, will increase the credit score?” In one embodiment, the Suggested Actions area 720 lists the one action (or set of actions) that will increase the score the most. In another embodiment, the Suggested Actions area 720 lists the top x actions (or sets of actions) (i.e., the x actions, or sets of actions, that will increase the score the most). In yet another embodiment, the Suggested Actions area 720 lists all actions (or sets of actions) that will increase the score. Other embodiments can show different numbers or types of actions. In addition, other embodiments can enable the user to specify characteristics of the actions, such as an amount of money to be allocated and/or when the allocation should be made.

The Common Simulations area 730 includes two questions that can be answered by the simulation system 100: “What is the best use of $x in available cash?” and “How can the credit score be increased by x points?” (which is represented by the statement “Increase score by x points”). In FIG. 7, the Common Simulations area 730 is collapsed so that it includes only the title bar. By selecting the arrow 798 to the left of the words “Common Simulations,” the Common Simulations area 730 can toggle between collapsed and expanded.

FIG. 17 is a user interface that shows simulation options and a Common Simulations area with a specified dollar value, according to one embodiment of the invention. The user inputs a value for one of the questions and selects the associated Find Out button 1700, 1710. As a result, one or more actions (or sets of actions) are shown and can be simulated. In other words, the actions (or sets of actions) that are shown are simulation options. These simulation options (i.e., actions or sets of actions) can be determined by using the simulation options module 230, as described above. The simulation options module 230 determines an answer to a complex question. Here, the question is either “What is the best use of $x in available cash?” or “How can the credit score be increased by x points?” (depending on which Find Out button 1700, 1710 was selected).

In one embodiment, if a set of actions is shown, the user can select all of the actions for simulation or select only a subset. If selected, an action will be taken into account when the Simulate button 750 is selected and a scenario is generated. For example, if the action “Pay $500 to CSUSA Account” is selected, then the credit data element that represents this balance will be decreased by $500 in the scenario.

In FIG. 17, the user has entered “3000” for the first question, thereby indicating that she wants to know how to allocate $3000 (or less) in order to maximize the credit score. The user then selects the first Find Out button 1700. FIG. 18 is a user interface that shows simulation options and a Common Simulations area with simulation options based on a specified dollar value, according to one embodiment of the invention. For this question, one action (or set of actions) is determined. In the illustrated embodiment, three simulations are performed, each using data from a different credit bureau. As a result, three actions (or sets of actions) are returned—one for each credit bureau. In the illustrated embodiment, the set of actions returned for Experian includes “Pay $1115 to ASSOC/CITI . . . , $633 to UNITED CREDIT NATIONAL, $750 to BURDINES/FDSB, $339 to CAPITAL ONE BANK . . . .”

The sets of actions returned for Equifax and TransUnion are different. The Equifax set of actions includes paying money to BESTBUY and doesn't include paying money to UNITED CREDIT NATIONAL. Also, while the Equifax set of actions allocates money to ASSOC/CITI, BURDINES/FDSB, and CAPITAL ONE BANK, the amounts allocated are different. Similarly, the TransUnion set of actions allocates money to ASSOC/CITI, BURDINES/FDSB, and CAPITAL ONE BANK, but in different amounts from Experian and Equifax.

Note that the total amount of money allocated in each of these sets of actions is actually less than the amount of money available (here, $3000). This reflects the fact that allocating more money doesn't always increase a credit score. Whether it does or not depends on the scoring algorithm used the by score module 220.

FIG. 19 is a user interface that shows simulation options and a Common Simulations area with simulation options based on a specified point value, according to one embodiment of the invention. Here, the user has entered “30” for the second question, thereby indicating that she wants to know which actions (or sets of actions) will increase the score by 30 points or more. The user then selected the second Find Out button 1710.

For this question, one or more actions (or sets of actions) are determined. In the illustrated embodiment, three simulations are performed, each using data from a different credit bureau. As a result, three groups of actions (or sets of actions) are returned—one for each credit bureau. In the illustrated embodiment, the action returned for Experian is “Pay $663 to CAPITAL ONE BANK Account . . . ” (which will increase that score by 33 points), while the action returned for Equifax is “Pay $549 to EQUIFAX CK Account . . . ” (which will increase that score by 38 points). No action was returned for TransUnion because that score cannot be increased by 30 points. In another embodiment (not shown), if the requested point increase is not possible, then an action or (set of actions) will be returned that achieves the highest point increase that is possible.

In one embodiment, for this latter question, the one action (or set of actions) that will increase the score the most (and at least by x points) is determined. In another embodiment, the top x actions (or sets of actions) are determined (i.e., the x actions, or sets of actions, that will increase the score the most, and at least by x points). In yet another embodiment, all actions (or sets of actions) that will increase the score by at least x points are determined. Other embodiments can show different numbers or types of actions. In addition, other embodiments can enable the user to specify characteristics of the actions, such as an amount of money to be allocated and/or when the allocation should be made.

Returning now to FIG. 3, simulation options are presented 350 to the user. The user selects one or more options, as described above, thereby indicating a scenario to simulate. For example, the user selects one or more actions from the Suggested Actions area 720 and/or changes the values of one or more fields in the Account Detail area 740. The user selects the Simulate button 750, and the option information is received 360.

The scenario module 210 generates 330 one or more (modified) scenarios based on the current credit data elements and the received simulation options. These scenarios are the same as the previous scenarios, except that one or more credit data elements have been modified based on the simulation option information. The score module 220 determines 340 one or more simulated scores based on the one or more scenarios. The presentation module 240 formats the one or more original credit score and the one or more simulated credit scores to generate a user interface, and they are presented 350 to the user, along with one or more simulation options. The user can now change the simulations options and run another simulation.

FIGS. 20A-B are user interfaces that show simulation options, according to one embodiment of the invention. The illustrated embodiment shows the following: a Suggested Actions area 3B; a Compare button 3C1 (to trigger a Tri-Bureau Comparison); an Update Risk Score (dispute resolution) button 3C2; a Suggested Actions area 3C; five Common Simulations areas (Money 3D, Time 3E, New Credit 3F, Negative Behavior 3K, and Information Only 3L); an Account Detail area 3M (including a 24 Month Payment History area 3N), a Start Over (reset) button, a Simulated Actions area 3G, an Original Score area 3H, a Simulated Score area (3i), a Differential Score area 3J, and a Simulate button.

Note that the Common Simulations areas 3D, 3E, 3F, 3K, 3L offer additional simulation options than were shown in the Common Simulations area 730 shown in FIG. 17. For example, the Money Common Simulations area 3D can simulate paying down total collections debt by a dollar amount or by a percentage. The Time Common Simulations area 3E can simulate paying minimum payments on all accounts and keeping accounts current for one month. The New Credit Common Simulations area 3F can simulate refinancing an existing mortgage for a new dollar amount. The Negative Behaviors Common Simulations area 3K can simulate filing for bankruptcy. The Information Only Common Simulations area 3L can simulate removing all public record items.

FIG. 20A also shows a Positive/Negative Factors area 3A and an Undo Last button. The Positive/Negative Factors area 3A identifies the positive factors and the negative factors that contributed most to determining the credit score. In the illustrated embodiment, there are three set of positive and negative factors: one for each credit bureau. The Undo Last button enables a user to reverse a simulation. In other words, the simulation can be returned to its previous state, before the Simulate button was selected.

Other embodiments also include additional user interface features, such as tabs that can be used to navigate between different topics such as credit at a glance, credit summary, credit simulations, score comparison, and print options. As described above, FIGS. 7-19 and 20A-B show various views available for the credit simulations tab, according to multiple embodiments of the invention. FIGS. 21 A-C are user interfaces that show the credit at a glance topic, according to multiple embodiments of the invention. FIGS. 22A-F are user interfaces that show the credit summary topic, according to multiple embodiments of the invention. FIGS. 23A-L are user interfaces that show the score comparison topic, according to multiple embodiments of the invention. FIGS. 24A-B are user interfaces that show the print options topic, according to multiple embodiments of the invention.

Although the invention has been described in considerable detail with reference to certain embodiments thereof, other embodiments are possible as will be understood to those skilled in the art. 

1. A computer-implemented method for simulating a financial risk score, comprising: determining a first financial risk score based on a first set of data; modifying the first set of data to create a second set of data; and determining a second financial risk score based on the second set of data. 